Washington, Jan 24: While in favor of concluding negotiations with India on a bilateral investment treaty as quickly as possible, the Obama Administration on Tuesday said it may take some time as the two countries navigate through some of the complicated issues associated with the pact. We continue to hold positive and productive technical discussions on a Bilateral Investment Treaty (BIT) with the Indian government and look forward to moving these talks forward as quickly as possible, White House National Security Council Deputy Spokesperson Caitlin Hayden told PTI. These are complicated issues that will take some time to work through, but both sides have committed ourselves to doing so in a thorough manner, Hayden said. The Obama Administration views America's economic relationship with India as very important, she said. We view the economic relationship with India as one of our most important and we are actively working to ensure that both countries are able to lay the groundwork for future opportunities, Hayden said. The White House official was responding to questions on a letter written by top American Senators led by Mark Warner, who urged US President Barack Obama to accelerate the process of BIT negotiations with India. We have received the letter from Senator Warner and share his views on the importance of strengthening our economic relationship with India, Hayden said. Warner, who is Co-Chair of the Senate India Caucus, was recently in India. The bipartisan letter signed by Warner and John Cornyn, another Co-Chair of the Senate India caucus, besides eight other Senators, urged the US President to negotiate the BIT with India. A BIT has the potential to help level the playing field for US companies seeking to invest in India and would provide protection to US investors from arbitrary, discriminatory or confiscatory Indian government measures, enforceable by recourse to independent international arbitration, the letter said. Such a treaty could also help facilitate additional investment in infrastructure and other areas in India where investment is badly needed and would provide protection to Indian companies as they expand investments in the US, the Senators said in their letter to Obama.
Noting that as the world's largest free-market democracy, India has become one of the United States' most critical strategic partners, the letter said the country's resilient economy, fast-growing middle class and entrepreneurial spirit have deservedly made it an attractive destination for American investment.
Protecting this existing and future investment through a high-standard BIT should be a top priority as the United States seeks to revitalise economic opportunities for American firms and strengthen our bilateral economic relationship with an important partner, the senators said. The senators brought to the notice of Obama that many countries have already recognised and acted upon the incredible economic opportunities India represents. India has completed investment agreements with 80 countries, including all major European nations, ASEAN members, Japan and South Korea. In order to overcome the competitive disadvantage already facing American companies in the Indian marketplace, it is imperative that the United States move forward quickly to negotiate and conclude this treaty, the letter said. A high-standard US-India BIT would better protect our businesses and create new sales and economic opportunities and would further solidify US-India economic relations, the senators wrote. The tremendous potential of a BIT with India to protect and promote growth-producing American investments abroad, attract Indian investment into the United States, put American companies on an equal footing with international counterparts in India and strengthen ties with a strategic partner is too significant to ignore, they argued. We urge you and your administration to move quickly on concluding a high-standard and comprehensive BIT as soon as possible and stand ready to assist you in this endeavor, the letter said.
